ManTech International Corporation (NASDAQ:MANT) ( www.mantech.com), a leading provider of innovative technologies and solutions for mission-critical national security programs, today announced financial results for the second quarter of 2012, which ended June 30, 2012.
“The defense services industry has experienced delays in contract awards and delays in funding based upon the uncertainty surrounding the congressional appropriation process, which we now expect to clear given the six-month Continuing Resolution agreed to yesterday according to the Washington Post,” said ManTech Chairman and Chief Executive Officer George J. Pedersen. “It now appears that government funding is secure through March 2013 at this year’s level, and we assume that customers will soon release funds that they have been holding, which will provide us the opportunity to return to a growth profile that investors have come to expect from ManTech over the past ten years. The award of the $2.85 billion MRAP contract, the largest contract award in our history, will provide a solid foundation and potential for growth despite future reductions of support in Afghanistan. We have grown our cyber and intelligence businesses over the past year, and we expect those markets to continue to grow. Looking beyond defense, we are expanding into new business areas such as healthcare IT and commercial cyber security. Our long-term outlook for growth remains positive.”
Summary Operating Results
Revenues for the quarter were $638.9 million, compared to $752.7 million in the second quarter of 2011. Quarterly revenues increased across intelligence, cyber security and healthcare programs, which partially offset industry-wide decreases in government spending, especially for support to wartime missions.Operating income for the quarter was $44.9 million, compared to $59.2 million in the second quarter of 2011. Operating margin of 7.0 percent reflected a higher mix of direct labor and excellent award fees stemming from strong program execution. Net income for the quarter was $24.7 million, compared to $36.4 million in the second quarter of 2011. Diluted earnings per share for the quarter were $0.67, compared to $0.99 in the second quarter of 2011. Net income and earnings per share for the second quarter of 2011 benefited from a $3.7 million pre-tax gain from the company’s equity interest in NetWitness, a network security product provider spun out of ManTech in 2006 and sold to EMC Corporation on April 1, 2011. Without that gain, net income and diluted earnings per share for the second quarter of 2011 would have been $34.1 million and $0.93, respectively.